Rank Group Reports 21% Rise in Underlying Profit as Digital and Casino Growth Drive FY26

^{The Rank Group, owner of Grosvenor casinos and Mecca bingo, reported underlying profit growth for a fifth consecutive year. (Photo: Sozi / Wikimedia Commons)}

The Rank Group has reported a 21% rise in underlying operating profit for its 2025/26 financial year, as growth across its Grosvenor casino venues and digital businesses helped the London-listed gambling and leisure operator absorb higher taxes and rising costs.

In preliminary results for the 12 months to 30 June 2026, published on 13 August, Rank said underlying operating profit increased to £78.6m, up from £64.8m the year before. Like-for-like net gaming revenue rose 6% to £834.1m, with the company noting that all of its businesses had grown for a fifth straight year.

The underlying operating margin widened to 9.4% from 8.1%, which Rank attributed to operational leverage as revenue outpaced costs. Return on capital employed climbed 3.2 percentage points to 18.3%, and the board recommended a total dividend of 3.50 pence per share, up 35% on the prior year.

Digital Rebounds After Duty Increase

Rank said digital like-for-like revenue grew 8% over the year, accelerating to 12% in the fourth quarter. That improvement came despite the increase in Remote Gaming Duty to 40% from 21%, which took effect on 1 April 2026, prompting the company to cut above-the-line marketing and pursue other efficiencies while protecting free bets and incentives for customers.

In its venues, average weekly net gaming revenue at Grosvenor rose 5% to £7.6m, helped by the rollout of 850 gaming machines across 37 casinos. Its Mecca bingo halls grew net gaming revenue by 4% on a like-for-like basis, though nine commercially unviable venues were closed during the period.

Regulatory Headwinds and Cost Actions

Statutory operating profit fell 7% to £55.7m after separately disclosed items of £22.9m. Those included a £5.0m provision for a proposed regulatory settlement with the Gambling Commission, a previously announced £6.5m loss from a payment fraud in Rank's Spanish business, and £6.7m of costs tied mainly to the Mecca closures.

Chief Executive Richard Harris said the group had delivered growth "during a year of significant change" and pointed to a medium-term ambition of at least £100m in operating profit, but he warned that further tax rises would threaten the wider industry.

Tax increases for clubs like ours, with high levels of supervision and operating on tight margins, will swiftly lead to lower tax receipts as much-loved bingo halls and casinos will be forced to close, impacting customers in local communities.

The group's Spanish bingo and gaming business, Enracha, grew like-for-like revenues by 7%, led by live bingo and gaming machines. Net cash before the impact of accounting standard IFRS 16 stood at £56.8m at the year-end, while net free cash flow of £25.5m reflected higher profits and lower capital spending.

Rank said the continued rollout and optimisation of gaming machines in Grosvenor represented a significant further opportunity, though performance in table gaming was affected by the conflict in the Middle East late in the year. Underlying earnings per share rose 15% to 10.5 pence.

Harris noted that Rank paid more than £225m in taxes and duties last year, and said tax proposals from anti-gambling campaigners "continue to cast clouds over a regulated industry" that supports jobs across the country. The full preliminary results were published on the company's investor site, with a results presentation scheduled for 16 September.